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ISSN 0798 1015 HOME Revista ESPACIOS ! ÍNDICES ! A LOS AUTORES ! Vol. 39 (# 04) Year 2018. Page 39 Strategic planning of resilience organizational structures in construction Planificación estratégica de estructuras organizacionales de resiliencia en la construcción Elena Aleksandrovna LYASKOVSKAYA 1; Tatyana Aleksandrovna SHINDINA 2 Received: 25/09/2017 • Approved: 15/11/2017 Content 1. Introduction 2. Theory 3. Data and methods 4. Methods or Model 5. Results 6. Discussion and Implication 7. Conclusions Acknowledgement References ABSTRACT: Purpose. It is essential to develop a methodological approach for strategic planning of resilience organizational structures in construction. It is necessary to establish the fundamental features of the construction industry, construction products, and recourse potential of a construction firm which are required to be taken into consideration when developing methods of strategic resilience management. Design/methodology/approach. They include methods of economic, system, strategic, and portfolio analysis. Findings. The directions of achieving the resilience of the construction firm as a complex system and their corresponding economic indicators: functional resilience which is defined by the level of production competitiveness and organizational resilience which is defined by the system of inter-firm relationships are determined. The models for evaluation the system resilience of inter-firm relationships and the RESUMEN: Propósito. Es esencial desarrollar un enfoque metodológico para la planificación estratégica de las estructuras organizacionales de resiliencia en la construcción. Es necesario establecer las características fundamentales de la industria de la construcción, los productos de construcción y el potencial de recurso de una empresa constructora que se deben tener en cuenta al desarrollar métodos de resiliencia estratégica gestión. Diseño/metodología/aproximación. Incluyen métodos de análisis económico, de sistemas, estratégicos y de portafolios. Resultados. Las orientaciones para lograr la resiliencia de la empresa constructora como sistema complejo y sus correspondientes indicadores económicos: resiliencia funcional que se define por el nivel de competitividad de la producción y resiliencia organizacional que es definidos por el sistema de relaciones entre empresas se determinan. Los modelos de evaluación del sistema

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Page 1: Vol. 39 (# 04) Year 2018. Page 39 Strategic planning of ... · resiliencia funcional y organizacional. Palabras clave: estabilidad de una empresa constructora, competitividad, flexibilidad

ISSN 0798 1015

HOME Revista ESPACIOS ! ÍNDICES ! A LOS AUTORES !

Vol. 39 (# 04) Year 2018. Page 39

Strategic planning of resilienceorganizational structures inconstructionPlanificación estratégica de estructuras organizacionales deresiliencia en la construcciónElena Aleksandrovna LYASKOVSKAYA 1; Tatyana Aleksandrovna SHINDINA 2

Received: 25/09/2017 • Approved: 15/11/2017

Content1. Introduction2. Theory3. Data and methods4. Methods or Model5. Results6. Discussion and Implication7. ConclusionsAcknowledgementReferences

ABSTRACT:Purpose. It is essential to develop a methodologicalapproach for strategic planning of resilienceorganizational structures in construction. It is necessaryto establish the fundamental features of theconstruction industry, construction products, andrecourse potential of a construction firm which arerequired to be taken into consideration when developingmethods of strategic resilience management.Design/methodology/approach. They include methodsof economic, system, strategic, and portfolio analysis.Findings. The directions of achieving the resilience ofthe construction firm as a complex system and theircorresponding economic indicators: functional resiliencewhich is defined by the level of productioncompetitiveness and organizational resilience which isdefined by the system of inter-firm relationships aredetermined. The models for evaluation the systemresilience of inter-firm relationships and the

RESUMEN:Propósito. Es esencial desarrollar un enfoquemetodológico para la planificación estratégica de lasestructuras organizacionales de resiliencia en laconstrucción. Es necesario establecer las característicasfundamentales de la industria de la construcción, losproductos de construcción y el potencial de recurso deuna empresa constructora que se deben tener encuenta al desarrollar métodos de resiliencia estratégicagestión. Diseño/metodología/aproximación. Incluyenmétodos de análisis económico, de sistemas,estratégicos y de portafolios. Resultados. Lasorientaciones para lograr la resiliencia de la empresaconstructora como sistema complejo y suscorrespondientes indicadores económicos: resilienciafuncional que se define por el nivel de competitividad dela producción y resiliencia organizacional que esdefinidos por el sistema de relaciones entre empresasse determinan. Los modelos de evaluación del sistema

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competitiveness of the construction firm, that allow toestablish resilience organizational structures within therealization of construction and investment projects, aredeveloped. Research limitations. Limitations on the useof the developed methods can be defined by thespecifics of the national investment and constructioncomplex of Russia. Practical implications. The use of thedeveloped methods and tools allow to ensure theeffective and stable functioning and the development ofconstruction firms under unstable conditions.Originality/value. The developed models for strategicresilience planning of the construction firm variables ofwhich are presented by the production competitivenessof the construction firm and the resilience of inter-firmrelationships under specific contracts allow creating aproduction plan of the construction company accordingto the criteria of functional and organizational resilience.Keywords: stability of a construction firm,competitiveness, organizational flexibility, strategicanalysis, inter-firm relationships

de resiliencia de las relaciones entre empresas y lacompetitividad de la empresa constructora, quepermiten establecer estructuras organizacionales deresiliencia dentro de la realización de proyectos deconstrucción e inversión, son desarrollado. Limitacionesde investigación. Las limitaciones en el uso de losmétodos desarrollados pueden ser definidas por losdetalles del complejo Nacional de inversión yconstrucción de Rusia. Implicaciones prácticas. El usode los métodos y herramientas desarrollados permiteasegurar el funcionamiento efectivo y estable y eldesarrollo de las empresas de construcción encondiciones inestables. Originalidad/valor. Los modelosdesarrollados para la planificación de la resilienciaestratégica de la empresa de construcción variables delas cuales son presentados por la competitividad de laproducción de la empresa constructora y la resilienciade las relaciones entre empresas en contratosespecíficos permiten crear un Plan de producción de laempresa constructora de acuerdo a los criterios deresiliencia funcional y organizacional. Palabras clave: estabilidad de una empresaconstructora, competitividad, flexibilidad organizacional,análisis estratégico, relaciones entre empresas

1. IntroductionThe improvement of the stability mechanism is one of the main objectives in socio-economicmanagement system. The current global crisis situation consists in the disparity of resourcesallocation and usage that leads to economic, environmental and social imbalances. Every yearthe relevance of research associated with the category “stability” and attention to the conceptsof “sustainable development” is increased as the importance of the approaches of “greenbuilding” (Lvov, 1999).The construction sector is one of the most significant sectors of the world economy thatprovides “sustainable development” objectives and determines the level of society developmentand its productive forces. The stability of individual construction firms can be defined asopportunities to achieve goals of “sustainable development” conception, and as the practicalimplementation of green standards.Resilience of construction firms is associated with applying methods of strategic management.Its goals are resilient competitive advantages, optimization of potential profitability,organizational structure flexibility, and balanced economic portfolio (David, 1995; Kwakye,1997; Thomson and Strickland, 1995).However, there is no sufficient solution of the problem of strategic planning of resilience ofconstruction firms. It is connected with the construction industry, construction products, andresource potential of construction firms has a number of significant features that are notconsidered in the methods of strategic management that are used in practice. As a result, thereis a necessity to develop different methods, because applying “classical” methods of thestrategic and portfolio analysis we do not solve the problems of resilient functioning and development of construction firms.

2. TheoryThe construction sector was and remains one of the most important economic sectors. Theeconomic growth of dynamics and socio-economic development of the regions and the statedepends on its development. The dynamics of construction products volumes is a generalindicator of the national economy of the state. The construction industry aims at changingproduction assets on a modern technical basis, developing and improving the social sphere, italso aims at reconstruction, modernization, technical re-equipment of material goods

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production (Gusakov, 1983; Dickman, 1988). Today construction, that has always beenconsidered a special sector of the national economy, is one of the pillars in the realization ofeconomic, environmental and social aspects of the concept of “sustainable development”.The stability of work of Modern Russian construction firms depends on the flexibility of theorganizational and management structures. The practical features of management shifted fromoptimizing internal company processes carried out on the principles of reengineering to inter-firm relationships, new forms of organization of the construction business and networktechnologies (Kwakye, 1997; Vikhansky and Naumov, 2004; Dickson, 1969). In theconstruction complex, the problems of inter-firm relationships are twice important because ofthe separation of functional responsibilities between different firms in the implementation ofinvestment projects and programs. The work of modern construction firms is multidimensional,dynamic, and probabilistic. Being done in an uncertain and complex environment, their workhas special requirements for the management tools of individual construction companies, thestability of which encourages the stability of the investment-construction sector at the regionallevel and in the national economy as well.The main problems of management in the construction industry today are due to the followingfactors: competition with other construction firms; decline in the volume of produced products;shortage of orders for construction and installation work; inadequate contractual arrangements;loss of traditional markets; customers’ insolvency; shortage of skilled workers; high level oftaxeshigh cost of materials; depreciation of fixed assets; high percentage of commercial credit;insufficient use of new technologiesTo solve these problems it is necessary to develop tools for strategic planning for the stability ofconstruction firms on the basis of the system approach, an interdisciplinary research andcomprehensive consideration of the peculiarities of the construction industry and constructionproducts.The problems of stability of systems of different nature and complexity are among the mostimportant in the various sciences. The management of sustainable development is one of themanagement paradigms of the 21st century. One comes across the concepts of "resilience" and"sustainable" very often in various fields of activities. Since the concept of resilience is theattribute characteristic, it is impossible to give it an unambiguous "objective" definition, it willvary depending on the application object. Usually the ability to save itself and the ability toexist are meant under resilience when the external and internal factors change;Nowadays the methodological basis of dynamic and multifaceted theory of the stability includesthe following components: fundamental principles of mathematics, mechanics, physics andchemistry; issues of economic theory and microeconomics; fundamental principles of the theoryof systems, system analysis, and synergetics; principles of theories of production organizationand special methods to increase the efficiency of activity of firms; laws of biology, ecology, andother natural sciences.Can we characterize the stability of the company? The categories "economic stability" and"financial stability" are the most often used. In Russian economic analysis, there is a rule thatthe essence of financial stability is the security of stocks and expenses by their own means (athree-dimensional function of financial stability), and its external manifestation in the shortterm is liquidity and solvency, as for the long term it is a capital structure. Estimated indicatorsof financial stability are current, quick and absolute liquidity, solvency, autonomy coefficientsand the threat of bankruptcy. To control the economic stability there are levels of organizationalmanagement, economic-financial and technological resilience, defined as the arithmetic meanor a geometric mean of indicators of state and use of fixed assets and equipment, material andlabor resources (Harrington and Wilson, 1986; Shim and Siegel, 1986; Bakanov and Sheremet,1999; Anonymous, 2007).The disadvantages of the existing methods of stability analysis of a construction company are:recommended methods do not take into account the sector features of production and financial

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cycle, financing, structure of assets and liabilities of construction firms; problems of resilienceforecasting in strategic decision-making in conditions of uncertainty are not considered in themethods; existing methods do not solve the problem of providing dynamic stability andsustainable development of the construction firm, taking into account sector characteristics.In the context of the objectives of sustainable development management of construction firms,it is necessary to study some fundamental features that characterize construction industry,products and their resource potential.

Peculiarities of the construction industry.Among them there is a high degree of state regulation, control and monitoring of theconstruction industry, a great influence of the state on the activity; close interdependencebetween production volumes, efficiency indicators of construction firms and the overalleconomic and political situation in the country.It is mainly a regional level of competition; competition between secondary and primarymarkets of real estate; high duration of production and financial cycles and the long period ofplanning, which presuppose the requirement of the time account, building models of cash flowsand thorough justification of design decisions.

Characteristics of construction products:Property, variety of architectural and structural plans, territorial fragmentation, capital intensity,material consumption, high cost, duration of creation and operation; possibility of futureconsumption of construction products, high quality requirements and high innovationrequirements, localization; social importance of products and possibility of its impact on theenvironment, natural conditions of the territories, mental and physical condition of a person.The seasonality of construction works and not regular production; continuity of production andsales phases; high risks of obsolescence and technology development, impact of the activitiesof the construction company on the ecological situation of the territory.

The peculiarities of the internal resource capacity of a construction company.The instability of the logistic system (the composition and quality of consumed resources) isdetermined by the variety of technological decisions of buildings construction. The presence oftechnological breaks in the work of individual teams requires the need to use a balancedproduction planning.The complex organizational structure of the firm, including investors, contractors,subcontractors, customers, realtors, intermediaries, supervisory authorities, etc., activities ofwhich are exposed to negative influence. This extends and complicates the system of inter-firmrelationships, which is fundamentally different from other industries.The great importance of operated machinery and mechanisms, building materials and labourrecourses determines the safety of construction and safety of further exploitation ofconstruction objects (Barbarskaya, 2012; Nebritov et al., 2012; Rybyanceva and Moiseenko,2014).It is literally the construction industry that possesses the most significant features making thesustainable development in construction firms slower. It is necessary to take into considerationindustry characteristics of construction firms when creating analytical tools to support strategicdecisions.

3. Data and methodsDoing business, which is focused on the strategy (Strategy Focused Business) is one of theprinciples of management in XXI century (Chandler, 1962; David, 1995; Pearce and Robinson,1985; Thomson and Strickland, 1995). Features of strategic management are: first of all,scenario-based nature of planning, and a focus on achieving results in the external

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environment; second, the appearance of adaptation solutions that are complementary added toplanned solutions; third, continuity of management process; fourth, a complication of functionsand management results. Development and implementation of the strategy is an important and necessary task not onlyfor large construction companies or unique, state buildings and structures in building projects,but also for the activities of construction firms that are interested in resilient operation anddevelopment. Moreover, sector characteristics of construction firms turn contracting processesinto strategic ones.Strategic management includes three interrelated areas: strategic analysis, strategydevelopment for the company and development of a strategic plan.A system of principles, objectives, and methods present the existing in the world practicemethodology of strategic management. The most popular analytical tools are matrix methods ofanalysis of the economic portfolio and the choice of strategy of the company (Chandler, 1962;David, 1995; Pearce and Robinson, 1985; Thomson and Strickland, 1995): the matrix of theBoston consulting group (BCG matrix); the product-market matrix proposed by I. Ansoff; thepublic sector matrix by Montanari and Broker; the matrix "General electric" / "MCKinsey"; theHofer and Schendel matrix; the Abell matrix; the matrix of directional policy Shell (Shell/DPM);the matrix of a life cycle by Arthur D. Little (ADL\LC).The use of matrix methods in the strategic planning of activities of construction firms seems tobe appropriate for the following reason. The construction firm always has a certain degree ofdiversification associated with the processes of contract activity and contracting, including asearch for the contracts implemented by the construction firm for some reward and thecontracts according to which other firms will provide the contractor with services.According to the matrix methods, the choice of strategy is a function of two variables: first ofall, a characteristic of the external environment of the firm, its attractiveness and level ofuncertainty; second, a characteristic of the internal environment of the firm, its resourcepotential and competitive status. These variables can be aggregated taking into account various factors, the composition ofwhich is determined by a management task for managers of the firm. The matrix methods ofeconomic portfolio analysis do not take into account either any of the essential features of theconstruction industry and internal resource capacity of a construction firm or peculiarities ofconstruction products.The comprehensive review of the analyzed features is presented by the characteristics of thesystem of inter-firm relationships of a construction company and competitiveness ofconstruction products. In our opinion, these aggregate variables are appropriate to be used intasks of strategic planning of resilience of the construction company. Let us study the role ofthese variables in the sustainable development of construction firms in detail.Nowadays, in the economic science there is a new paradigm system that replaces neoclassical,institutional and evolutionary paradigms. According the academician Kleiner it is based on theuse of the methodology of the system analysis and the system theory. A person or an employeeused to be the main object of management and management itself was about human resourcescontrol but according to the system paradigm the main management object is an intercompanyeconomic system. As a result “human resources management becomes management ofsystems”. The system management includes not only control over intercompany subsystemsbut also control over a firm as one independent system. This system maintains space and timeas well as the necessary internal diversity. The main object of the enterprise management is itseconomic subsystem, in which time and space components are combined as it is in the strategicmanagement (Kleiner, 2015).The stability of a construction firm depends on its resource, organizational and informationalcharacteristics, which are determined by the level of production organization and management(Bertalanfi, 1974; Bogdanov, 1989; Van Gig, 1981; Dickson, 1969; Economics, 1975).

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The construction firm as a system is resilient if it is able to perform its functions in terms ofperturbations of the factors of the external and internal environment. Despite the fact that themodern construction firms are multifunctional systems that operate on several markets (capital,labor, supplies and contracts), and perform several functions (social, urban development,demand, and others), their main function is production. It is reflected in the volume, timing,cost and quality of construction works and it forms the basis for the functional stability.The construction firm can achieve the functional stability due to its competitiveness. Thecompetitiveness of construction firms is a complex of resource, information and organizationalcharacteristics, which allows to face competition and to participate in tenders.The analyzed characteristics of the construction industry define the essential features inconcepts "competitiveness of the construction company" and "competitiveness of constructionproduction"

1. One of the features of the construction industry is that the main factors of competitiveness of firmsare formed and manifest themselves at the national and regional markets. The concentration of thecompetitive relations is formed within the investment-construction complex of the region, inter-firmrelationships of the mesolevel.

2. The situation of perfect competition is not usual for the construction industry. The main type ofcompetition in the level of investment-construction complex of the region is price competition. Thecompetitiveness of construction structures can be evaluated through the efficiency of thecontractual activities and processes of contracting, and also through the ability to win tenders(Barbarskaya, 2012; Nebritov et al., 2012; Rybyanceva and Moiseenko, 2014).

3. Among five groups of factors distinguished in the theory of competition (global, cultural, innovative,technical and resource) resource, technology and innovative factors have the greatest importance inconstruction. The experience with Russian construction firms has proven that the most importantfactor is the administrative resource. It is the administrative resource that determines theeffectiveness of participation in tenders for contract works, the possibility of construction contracts,reconstruction and restoration of large objects for various purposes.

4. Unlike other industries, the standard ration "price - quality" in order to determine the level ofproduction competitiveness is undergoing significant changes in the analysis of the competitivenessof construction products. Violation of the established norms in construction leads to an increase inthe cost of construction works not significantly increasing its customer value. The most commonlyused criterion for the competitiveness of construction products is the ratio between the averagesupply price in a given region and the internal price of the company at a specific point in time.

The competitiveness of construction firms is formed on three interrelated levels: operation (thecompetitiveness of construction products and demand for them); tactic (operational processes,competitiveness of investment and construction activities, a creation of conditions for theoptimal combination of factors and conditions of production); strategy (competitiveness ofdevelopment, processes of reproduction and adaptation to the environment, resilient strategy,structure and competition).Due to long production and financial cycles in the construction industry, warranty maintenancethese levels are often interconnected with each other and at each of them, the system of inter-firm relationships and interactions has a special importance. Let us consider how the system of inter-firm relationships affects the stable functioning of theenterprise. To achieve the functional resilience (time, cost and quality of construction) there areopportunities for the construction firm dealing with creation and development of neworganizational structures in the implementation of construction works (work contracts) andinvestment projects. These opportunities are characterized by the organizational flexibility ofconstruction firms. Unlike industrial production the team that builds the object is always a neworganizational structure.The construction output in the form of buildings, constructions and their complexes with the useof raw materials, construction equipment, ancillary buildings and electricity presupposes theexistence of adequate conditions of production and operation of the following subsystems

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(Kwakye, 1997; Voropayev, 1975; Dickman, 1988): material preparation of production;technical and engineering preparation of production; production service; organizationalpreparation of production; production management.Let us emphasize that flexible organizational structures that are able to adapt in accordancewith changes in requirements of internal and/or external environment are becoming popular notonly in the construction industry. These structures successfully combine positive aspects of bothlinear and functional structures.In the theory of organizational management there are two types of flexible organizationalstructures: project temporary organizational structure that is created for specific tasks, andstops functioning after their implementation; constant matrix organizational structure orfunctional one, which is a characteristic of firms operating according to the project type(Vikhansky and Naumov, 2004; Dickman, 1988).Considering the peculiarities of the organizational flexibility of construction firms it is necessaryto emphasize the following. The organizational flexibility of construction firms is achievedthrough purposeful management of the system of inter-firm relationships. There are different types of relationships between the elements of the production process inconstruction: man-man; man-team; community-community; man-society, man-tool, etc(Bakanov and Sheremet, 1999; Anonymous, 2006).These relations can be subdivided as follows: technological relations, reflecting thecharacteristics of the production process; organizational relationships, namely, the need toorganize technologies, equipment, people, the relationships in the team, and relationshipbetween teams; social relations relevant to the situation in the society, to social roles and theinterdependencies, interactions between people.For example, let us consider the system of relations in the housing sector: relationship betweenbuilders and territorial authority (can be expressed by the level of site assessment);relationship between builders and investors can be expressed in the input housing, the quantity,and quality of housing; relationship influencing building capacity of companies and the situationon the construction market (equipment, materials, construction work) are characterized by theestimated cost of construction or by a contract price (can be expressed in terms of theestimated cost referred to the number meters of floor space in the facility); relationships thataffect how people are provided with housing (can be expressed in the price of housing per 1m2); relationship between builders and consumers (can be expressed through the level ofhousing affordability); relationship between owners of housing and providing service companiesor housing and municipal relationship (can be expressed in terms of the housing payment).

4. Methods or ModelStrategic planning of resilient organizational structures in the construction consists of twointerrelated areas of analysis activity.The first is a comprehensive analysis of the competitiveness of certain types of constructionproduction (construction works). The competitiveness of construction products determines thefunctional stability of the company (the formation of the financial result, sources of formation ofinventories and costs).The second direction involves the assessment, diagnostics, and forecasting system of inter-firmrelationships. The stability of inter-firm relationships determines organizational flexibility (theability to make new and effective organizational structures for implementation of project tasks).

Assessment of construction products competitivenessThe competitiveness of construction firm can be determined through a comprehensiveassessment of the actual competitiveness level of certain types of construction products incomparison with competitors. The level of competitiveness of construction products is changing

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along with the object of comparison. The primary valuation parameters are: indicators thatestimate the cost of construction; indicators of construction time; indicators of qualityconstruction , including compliance of construction works BREEAM (UK) LEED (USA), the “Greenstandards” (Russian Federation); the guarantee system for customers and future users.Determining the competitiveness the level of separate kinds of construction materials occursthrough complex comparative assessment, multidimensional comparisons and a(nonparametric) ranking analysis (Bakanov and Sheremet, 1999; Anonymous, 2007). Theindicator of complex assessment allows users to integrate various parameters of thecompetitiveness of construction products (price, quality, construction schedule, etc.). Themultivariate rank analysis allows taking into account different units of measurement,quantitative and qualitative parameters of competitiveness and the different assessment of thedirection of their changes. Comparative evaluation allows taking into account their varyingimportance or contribution of the individual parameters in the integral indicator of thecompetitiveness of construction products. Then there is a comparison of competitivenessparameters achieved by the enterprise with the reference values. The benchmark is eithernormative settings or their average market values. For example, it is the average price ofsupply in the region.

The evaluation method of the integral level of construction products competitiveness

The evaluation method of the integral level of competitiveness of constructionproducts

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Diagnostics of stability of the inter-firm relationships systemContemporary strategic marketing in the construction industry is relationshipmarketing. Intercompany relations between participants of investment and constructionactivities have a certain level of abstraction and can be expressed in the form ofcontracts for a certain amount of cooperation. The essential strength characteristic ofconnections is not their presence /absence in a pure form and the constancy ofrepetition. This constancy is reflected in space in the form of treaties and in time – inthe form of stability of inter-firm relationships.

The analysis of the stability of inter-firm contractual relations occurs through applyingthe approach of information dynamics (Bertalanfi, 1974; Liiv, 2001; Anonymous, 2007;Economics, 1975). The information entropy is a measure of changing non-certainty incontractual activities described by the probabilities of occurrence of contractual events.It is possible to identify the relation between the characteristics of inter-firm relations,an opportunity of making contracts and probability of carrying out construction worksaccording to this contract.

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5. ResultsStrategic planning methodology of the construction company resilience:1. Definition of the main types of construction products, construction works and/or constructioninvestment projects implemented by the firm.2. Diagnostics of contractual activities of the construction company: contracts, counterparties,amounts, timing, estimated cost of construction and installation works.3. Assessment of construction firms competitiveness, using 3 levels of competitiveness level ofvarious types of construction products: high, medium and low. The analysis of the stability ofinter-firm relationships for each type of contract, using 3 levels of inter-firm relations stability:high, medium and low.4. The positioning of the production activities of the construction company within a double-coordinate matrix. Using three levels of each indicator, we get the matrix consisting of 9 cells.They can be divided into the following development activities: the zone of growth anddevelopment of construction activities; the zone of selective positions; the zones of reducingactivity and/or cancellation of the contract.5. Planning firm behavior according to various types of construction works within the existingpossibilities for resilient functioning and sustainable development .

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Table 1Matrix of strategic planning of construction company resilience

The competitiveness level of products of construction company

The level ofstability ofinter-firm

Relationshipsof

constructioncompany

High Medium Low

HighGrowth and

development ofconstruction activities

Growth and developmentof construction activities

Selective position

MediumGrowth and

development ofconstruction activities

Selective positionReducing activity

and/or cancelation ofthe contract

Low Selective positionReducing activity and/or

cancelation of the contract

Reducing activityand/or cancelation of

the contract

6. Discussion and ImplicationPossible directions of development of analytical tools in the strategic planning of resilience oforganizational structures in construction are as follows:The development of models for synergistic effects an account in different types of constructionand/or for implementation of various investment and construction projects.The development of models to predict changes in the resilience of construction companies for acertain period of time which is determined by the timing of the production program and/ortiming of individual investment construction projects.The development of dynamic models to find opportunities for sustainable development of theconstruction company when factors of the external and internal environment change.The development of systems of automated support of management solutions by monitoringparameters of competitiveness and resilience factors of inter-firm relations.The solution of problems of strategic coordination between different types of building productsand the choice of specific development strategies.

7. ConclusionsThe results of theoretical and methodological studies presented in the article allow formulatingconclusions in the strategic planning of the resilience of construction firms.1. The construction industry plays a special role in the implementation of social, environmentaland economic challenges within the concept of “sustainable development”. The stability ofindividual construction firms is defined as the possibility of achieving the objectives of thesustainable development and as the practical implementation of green standards.2. The developed methods of strategic planning do not allow to solve tasks of ensuring thestability of construction firms, do not take into account the fundamental features thatcharacterize construction industry, construction and resource potential of a constructioncompany.3. Applying matrix methods of the portfolio analysis in the strategic planning of construction

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firm resilience is very appropriate as the construction firm always has a certain degree ofdiversification associated with the processes of contract activity and contracting.4. The stability of the construction company as an open socio-economic system is determinedby its functional, structural and stability information, which are determined by the level ofcompetitiveness, organizational flexibility, and stability of the system of inter-firm relationships.5. The organizational flexibility of construction firms is achieved by purposeful management ofinter-firm relationships. Strategic marketing in the construction industry is relationshipmarketing.6. The competitiveness or resource, information and organizational characteristics ofconstruction firm allow achieving the functional stability of a construction firm that means toovercome the forces of competition and to participate in tenders.7. The main type of competition in the construction industry is price competition at the regionallevel, which is assessed by the efficiency of contracting processes. The most significantcompetitive advantage is the administrative resource. Conditions and factors of thecompetitiveness of construction firms on strategic, tactical and operational levels areinterrelated because of continuing significant production and financial cycle in the constructionindustry.8. Strategic planning of resilient organizational structures in construction industry includes twodirections: a comprehensive analysis of the competitiveness of certain types of constructionproducts, which ensures functional stability of the firm and the diagnostics of the resilience ofinter-firm relationships that provides organizational flexibility (making effective organizationalstructures for solving new project tasks).9. Methods of multivariate comparisons and integrated assessment of certain types ofconstruction products competitiveness are applied for estimation of a competitive level ofconstruction firms.10. To analyze the stability of inter-firm relationships system it is appropriate to apply theapproach of information dynamics. The stability of inter-firm relationships is a stochasticfunction of a number of contracts and the frequency of their formation.11. Strategic planning of the construction company resilience is done through the positioning ofcertain types of construction works (construction contracts) on a double-coordinate matrix,divided by the zone of growth and development of construction activities; the zone of selectivepositions and the zone of reducing activity and/or cancelation of the contract.

AcknowledgementThe work was supported by Act 211 Government of the Russian Federation, contractNo. 02.A03.21.0011

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1. South Ural State University, 454080, Russia, Chelyabinsk, Lenin prospekt, 76. E-mail: [email protected]. South Ural State University, 454080, Russia, Chelyabinsk, Lenin prospekt, 76 . E-mail: [email protected]

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